Pull Profitable Business From "Lost Causes"
February, 2003

The "lost causes" file. You know you have one. It's filled with the customers you're sure will never do business with you again. You're so sure, you haven't even bothered contacting them in what seems like forever. Each one represents a dark moment for your company, and an unkept promise. This file is filled with blown deadlines on critical jobs; incorrect billings you didn't own up to; rude delivery personnel, and more. Regardless of the reasons, the result is the same: You aren't getting their business.

Guess what: There's no better time than the present to give these guys another shot! It may sound painful, but it's time to wipe the dust from these files and rap on those doors once more. Here are three rules to keep in mind as you call on these prospects, hat in hand:

Rule No. 1 – Forget Price Concessions: It’s a sure bet that a main reason why some of these prospects left was a competitor’s rock-bottom pricing. Although it may be tempting, don’t capitulate to market pressure and do some price-slashing of your own. Lower prices may have made them leave, but that’s no guarantee they’ll bring them back. Instead, focus on how your company can help each of these prospects win more customers. That's a heck of a lot stronger than a 20% discount.

Rule No.2 – Be Creative and Be Honest: Calling on lost causes may seem like a grim task, but you really have nothing to lose. When you're trying to revive long-dead relationships, it's worth it to take a chance and be a little creative. Try sending them a "we've changed" letter – complete with a list of your prior shortcomings and the steps you've taken to correct them. Is it risky? Sure. But an honest, self-deprecating approach may be just the ice-breaker you need.

Rule No. 3 – It’s Not Just For “Lost Causes”: Once you've won back a few customers you never thought you would, don't stop there. Apply these same principles to prospects you just haven't had any luck reeling in No .2 the past. These are the prospects you know you should be working with, but who simply haven't responded favorably to your previous marketing attempts. A different approach may be just the tonic that gets these prospects into your portfolio.

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